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    Bless y Case

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    Tyrone Davis Amar
    Blessy borrowed money from Cherry's lending company to start a small business. Their written contract stated Blessy would repay the loan after six months, but did not mention interest. When Blessy repaid the loan on time, Cherry demanded an additional 6% interest. However, the contract did not expressly stipulate interest in writing, as required by law. Therefore, the demand for interest beyond the terms of the contract is not valid.

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    Bless y Case

    Uploaded by

    Tyrone Davis Amar
    329 views1 page
    Blessy borrowed money from Cherry's lending company to start a small business. Their written contract stated Blessy would repay the loan after six months, but did not mention interest. When Blessy repaid the loan on time, Cherry demanded an additional 6% interest. However, the contract did not expressly stipulate interest in writing, as required by law. Therefore, the demand for interest beyond the terms of the contract is not valid.

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    Blessy borrowed money from Cherry's lending company to start a small business. Their written contract stated Blessy would repay the loan after six months, but did not mention interest. When Blessy repaid the loan on time, Cherry demanded an additional 6% interest. However, the contract did not expressly stipulate interest in writing, as required by law. Therefore, the demand for interest beyond the terms of the contract is not valid.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    329 views1 page

    Bless y Case

    Uploaded by

    Tyrone Davis Amar
    Blessy borrowed money from Cherry's lending company to start a small business. Their written contract stated Blessy would repay the loan after six months, but did not mention interest. When Blessy repaid the loan on time, Cherry demanded an additional 6% interest. However, the contract did not expressly stipulate interest in writing, as required by law. Therefore, the demand for interest beyond the terms of the contract is not valid.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    LISANO ALIYSSA A.

    BSHM604

    LEGAL ASPECTS

    Case#3: Blessy borrowed money from Cherry, an owner of lending company, for her small neighborhood
    bar business. It was stated in their contract that she will pay the money after six (6) months. When
    Blessy returned the money on the due date, she was asked to pay an additional 6% interest. It this valid?
    Support your answer.

    ANSWER: According to Article 1956. “No interest shall be due unless it has been expressly stipulated
    in writing”. In the given case Blessy the borrower and Cherry the owner of the lending company has a
    written contract, and the contract only states that the borrower should pay the money after six months.
    It is not stated there that there would be added 6% interest. Therefore, the action of the owner is not
    valid and it is illegal.

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